Card Range To Study

58 Cards in this Set

the dollars that become available when people abstain from consumption

financial system

a network of savers, investors, and financial institutions that work together to transfer savings to investors

certificate of deposit

a receipt showing that an investor has made an interest-
bearing loan to a bank

financial assets

claims on the property and the income of the borrower

financial intermediaries

financial intermediaries- financial institutions that lend the funds that savers provide to borrowers

ex: depository institutions, life insurance companies, pension funds, and other institutions that channel savings from savers to borrowers

the circular flow

savers can provide their funds directly through the many financial intermediaries in the economy such as banks and credit unions. The borrowers then generate the financial assets, which return to the lender